TOM ELLIOTT:
We've got the Free Trade Agreement the Federal Government has just signed with Japan and South Korea in the past 24 hours. Is China next? Bruce Billson is the Federal Minister for Small Business and he is in China as we speak. Mr Billson good evening. So what have you been doing over there?
BRUCE BILLSON:
Well it's the largest government sponsored trade delegation in our nation’s history, with some 600 businesses, many of them small businesses, coming to China and exploring the opportunities. As the Chinese economy and consumer preferences become more sophisticated, there are some delicious opportunities for Australian businesses, in particular small businesses, and that's what we are seeking to explore and build a foundation for more jobs and growth through good commercial relationships with China.
TOM ELLIOTT:
Well speaking of building foundations, are we soon set to sign a Free Trade Agreement with China?
BRUCE BILLSON:
Well progressing one is a priority for our country but it needs to be a good, high quality agreement that really delivers meaningful economic benefits for us and for China, and that's an important part of the bilateral relationships.
We've got some complimentary characteristics in our economies that lend themselves to an agreement but it's got to be a good quality agreement. We need to be sure and satisfied that there are increasing chances for Australian businesses to tap into China's growing demand for food and services.
There are some pretty big opportunities there in the financial, legal, education and tourism space just to mention a few but we need to grow trade beyond the education and tourism area. Today we saw one of Tourism Australia's latest promotional videos linking food, wine and the quality of the Australian experience with the unique landscape - trying to not only promote our country as a tourist destination but build the taste for what we produce well and that's great food, great wine and that will all be part of the discussions in China.
TOM ELLIOTT:
Obviously, the Chinese economy has been enormously important to Australia in recent years, it's probably the reason we didn't go into recession during the global financial crisis a few years back. Did you get any sense that it's all okay and that there were no signs that things were about to topple over up there?
BRUCE BILLSON:
No I didn't get that sense. I'm in a city at the moment that has 15 million people in it-you can virtually feel the energy of the place throb - but it's in a transition of its own. We are in the south of China, in a city called Guangzhou, which has been a traditional gateway for commerce and people to people relationships with our country for over 150 years.
You can sense the enterprise, the drive and the have a go mentality, but the economy is changing as well. Here, we've seen these southern cities becoming more sophisticated. Some of the cheaper, low cost manufacturing operations that were driving the economy here for some decades are now moving to other locations where the costs are less of a pressure, and they are looking to make a more sophisticated economy and more domestic consumption too. They are trying to shift the economy away from exporting manufactured stuff, primarily to the rest of the world, to trying to grow its domestic consumption and make it a more modern economy.
So, it's not without its challenges but again, that's where the opportunities present themselves for our nation. Appetites are also changing - the dairy industry is very significant here, everyone seems to be wanting Australian wines, our fresh food, our beef. We want to supply those products to the growing middle class. When we're talking about growing, where talking about hundreds of millions of people, and we want to supply that demand. That's why having good terms of access and opportunity are important for our work.
TOM ELLIOTT:
Bruce Billson thanks for your time.
BRUCE BILLSON:
Thanks for your interest Tom.
TOM ELLIOTT:
Bruce Billson, Minister for Small Business on a trade delegation to China.